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The Bankruptcy Code is divided into 2 Types, and 5 Chapters.
The
two types are:
1) Straight/Liquidation; (Chapter 7 only) and
2) Reorganization/Repayment; (all the rest:
Chapters 9, 11, 12, and 13)
The two chapters that usually apply to consumers are Chapter 7, where most or all
of your debt is wiped out, and Chapter 13, which involves a repayment plan.
Chapter 9 is for cities.
Chapter 11 is a reorganization for a corporation or someone who has a lot of debt, normally more than a million
dollars.
Chapter 12 is for farmers.
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Bankruptcy Glossary
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